Dollar rises vs euro on worries about fiscal cliff

AP News
Posted: Nov 16, 2012 4:29 PM

NEW YORK (AP) — The dollar rose against the euro as Congressional leaders meet with President Barack Obama about cutting the U.S. government's budget deficit.

Traders are worried about the U.S. "fiscal cliff," a series of tax increases and government spending cuts set to kick in at the beginning of next year.

The dollar is considered a safe haven currency and tends to rise when traders are nervous about the economy.

The euro fell to $1.2727 in late trading Friday from $1.2773 late Thursday.

The dollar was practically unchanged at 81.22 Japanese yen from 81.21 yen. The dollar is up 2.2 percent against the yen for the week due to political turmoil in Japan. Japanese Prime Minister Yoshihiko Noda dissolved the lower house of parliament Friday. Elections are set for Dec. 16. If Noda's party loses, the country will get its seventh prime minister in six and a half years.

In other trading, the British pound rose to $1.5883 from $1.5850.

The dollar fell slightly to 1.0016 Canadian dollar from 1.0017 Canadian dollar.

The dollar rose to 0.9464 Swiss franc from 0.9424 Swiss franc.